Business
Purple Innovation Provides COVID-19 Related Business Update
Company Experiencing Acceleration in Digital Channel Demand LEHI, Utah, April 13, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), a
About this update from Purple Innovation, Inc.
[{"type":"text","content":"Company Experiencing Acceleration in Digital Channel Demand\n\n\nLEHI, Utah, April 13, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) (\"Purple\"), a comfort innovation company known for creating the \"World's First No Pressure ™ Mattress,\" today provided a business update in response to the continued impact from COVID-19. \n\n \n \n \n \n \n \n\n \n\"Our thoughts are with everyone affected by the Coronavirus and we salute all of the individuals on the front lines fighting the pandemic,\" said Joe Megibow. \"At Purple, our priority is ensuring the health and safety of our customers, employees and communities and I'm very proud of how our teams are responding to the challenges created by this unprecedented situation. Over the past few weeks since our withdrawal of 2020 guidance, we have seen the wholesale side of our business continue to recede with further temporary shutdowns of non-essential businesses and shelter-at-home directives in most states. Concurrently, consumer purchasing behavior has shifted quite meaningfully to e-commerce. In response, we have refocused our efforts back to our DTC core competencies resulting in an acceleration in digital channel sales across all of our product categories in the last half of March through early April. We are particularly encouraged with the increase in demand for our ancillary products including pillows, sheets, and especially seat cushions. This increase in online demand has produced online growth in excess of 35% over the prior year first quarter, allowing us to substantially offset declines in our wholesale channel. We are very pleased to be able to meet the needs of our customers during this difficult period.\" \nMegibow continued, \"This increase in digital demand we've experienced has allowed us to work through a significant portion of our on-hand inventory. Given the difficultly in predicting how long this pandemic will persist and its full impact, we continue to look at all opportunities to preserve liquidity. This includes taking advantage of our vertically integrated business model to adjust production schedules to match current demand and tightly manage labor costs, including furloughing roughly 35% of our permanent workforce. We also have the ability to immediately adjust our significant discretionary online advertising spend in response to any changes in D...